Chinese advertising ban hurting luxury sector

Burberry Group is the worst performing stock on the pan-European FTSEurofirst 300 index, with rival luxury goods companies also falling as traders cite a Chinese advertising ban on certain expensive gift items as hurting the sector.

China's Xinhua state news agency reported earlier this week that the country's radio and television stations are to ban advertisements for expensive gifts such as watches, rare stamps and gold coins.

"Ban on TV/radio in China hurting luxury sector," says a trader, commenting on the fall in Burberry's share price.

JN Financial trader Rick Jones says Burberry and other luxury goods companies may have to deal with the prospects of slower growth from their Asian markets in future.

"The growth coming from Asia might be slightly diminishing. There are signs that we're expecting to see lower growth forecasts for Burberry," says Jones.

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